SMI: Budget Effect-Which Stock will move Market?

Posted By : Kishore B.S



Have look at expected movers (companies) in Stock Markets due to Budget 2012.


Union Budget 2012: Which stocks will move market?

16 Mar 2012, 07:20 AM

The countdown has begun for the most awaited event of the year in India. All eyes are today on the Union Budget 2012 to be presented by Pranab Mukherjee for the seventh time. Though no bid bang reforms are expected this time, capital markets may elicit an immediate reaction depending on what Pranabda has in his kitty. The key points that everyone is watching include fiscal consolidation, GDP figure and tax reform packages.

Which are the stocks to keep an eye on?


The market base case is a 10% increase in excise, However, up to 15% hike is already factored in the stock. Therefore, anything below 10% or above 15% will surprise that will see the stock move in the index.

BHEL, Alstom

An import duty levy of 19% is being widely anticipated by the domestic power equipment manufacturers. The street believes the likelihood is very high, and if implemented, will give a major boost to the stocks. Chinese manufacturers have however been nervous.


This company has lobbied hard against excise duty on diesel vehicles. It will be the biggest loser if the government goes ahead with the proposal. Conversely, it will see a relief rally if the proposal is not implemented.


Budgetary provision for oil is not material, say experts. Government is likely to provide residual amount for FY12 in the Budget. Any clarity on subsidies benefits the upstream companies the most.


This company will be the biggest beneficiary of any positive move in the infrastructure space. Expectations are mainly on improved capital availability and also benefits from power equipment duty.


The cash-crunched company is hoping for a move on FDI. It is said to have interested foreign suitors willing to buy stake. For an executive decision, the Budget may be a platform.

National Fertilizers, RCF

The Fertiliser Ministry’s proposal to reduce subsidy on P and K fertilisers under the Nutrient Based Subsidy (NBS) policy has already been approved by the cabinet. The rates are set to be implemented from April 1. The stocks had reacted, but still, any open on March 22 and will close on March 27.

News reports say that oil PSUs are looking to up ATF prices by an average Rs 1,402 per kilo litre. Watch out for aviation stocks such as Kingfisher and Jet Airways.




Team SMI



One Comment

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    April 2, 2012

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